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COPF questions Inland Revenue Dept. on a wide range of subjects

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COPF chairman Dr Harsha de Silva and MP Ravi Karunanayake and committee officials at the last COPF meeting

The Inland Revenue Department (IRD) has been able to collect only 10 percent of taxes due from the eight million strong workforce, it was revealed during a probe conducted by the Committee on Public Finance of Parliament.

This was revealed during a COPE probe on IRD at the parliamentary complex on Tuesday (18), parliament sources said.

The COPF chaired by Dr. Harsha de Silva summoned to discuss the Inland Revenue (Amendment) Bill to amend the Inland Revenue Act, No. 24 of 2017.

The issue that IRD has only been able to collect taxes from 800,000 when there are approximately 8 million in the workforce came up when the Committee took into consideration the proposal that PIT (Personal Income Tax) relief to be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum under the Bill.

The Bill while proposing PIT relief be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum, also Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45%.

Furthermore, export of services will be liable for income tax at the rate of 15% and proposals have also been made that Withholding Tax (WHT) rate on interest to be increased from 5% to 10%.

Considering PAYE data analysis in-depth, the COPF concluded that there is an error in the existing data. Accordingly, the Committee Chair directed the officials to provide an accurate data analysis to the Committee.

Moreover, it was also disclosed at the Committee on Public Finance that the implementation of obtaining a Taxpayer Identification Number (TIN) while being essential for paying taxes / importing/exporting or obtaining any services from the Inland Revenue, is not functioning. The Committee instructed the officials present to update the Committee on the status regarding the smooth execution of the process.

Considering the proposal on Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45% the Committee expressed its dissatisfaction over the failure of the Ministry to duly establish a casino regulator. Furthermore, the Committee Chair also expressed its dissatisfaction given that the Inland Revenue Department had failed to provide proper data requested by the Committee previously on the revenue received from Casino operations of the last five years.

The Committee also questioned official present regarding having to pay 25% against a tax appeal. The Committee questioned if it is ethical to demand a cash deposit instead of a bank guarantee when making an appeal.This meeting was attended by Deputy Minister Dr Harshana Suriyapperuma along with MPs Ravi Karunanayake, Wijesiri Basnayake, Nimal Palihena.



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JMSDF MURASAME departs island

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Japan Maritime Self-Defence Force (JMSDF) MURASAME which arrived in Sri Lanka on 22 March 2025 for replenishment, departed the island on Tuesday (25 Mar).

The Sri Lanka Navy bade customary farewell to the departing ship at the Port of Colombo, following naval traditions.

During the stay in Sri Lanka, crew members of JMSDF MURASAME visited some popular tourist destinations within the Colombo city.

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UK sanctions Shavendra, Wasantha, others in line with Labour party’s election pledge – Secretary of State

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Lammy

UK Secretary of State for Foreign, Commonwealth and Development Affairs, David Lammy, has said that sanctions were imposed on former Army Commanders General Shavendra Silva, General Jagath Jayasuriya, Admiral of the Fleet Wasantha Karannagoda and one-time LTTE Ampara-Batticaloa commander Vinayagamoorthy Muralitharan, alias Karuna Amman, in accordance with an assurance given to the electorate at the 2024 July general election.

The Labour party won the July 2024 general election.

The British government statement quoted Lammy as having said that he made a commitment during the election campaign to ensure that those responsible would not be allowed impunity. Lammy emphasised that this decision ensured that those responsible for past

human rights violations and abuses were held accountable.

The text of the statement: “The UK sanctions former Sri Lankan commanders and an ex–Liberation Tigers of Tamil Eelam (LTTE) commander responsible for serious human rights violations and abuses during the civil war.

* Sanctions aim to seek accountability for serious human rights violations and abuses, committed during the civil war, and to prevent a culture of impunity.

* UK is committed to working with new Sri Lankan government on human rights, welcoming their commitments to national unity.

The UK government has imposed sanctions on 4 individuals responsible for serious human rights abuses and violations during the Sri Lanka civil war, including extra-judicial killings, torture and/or perpetration of sexual violence.

The individuals sanctioned by the UK today include former senior Sri Lankan military commanders, and a former LTTE military commander who later led the paramilitary Karuna Group, operating on behalf of the Sri Lankan military against the LTTE.

The measures, which include UK travel bans and asset freezes, target individuals responsible for a range of violations and abuses, such as extra-judicial killings, during the civil war.

Secretary of State for Foreign, Commonwealth and Development Affairs, David Lammy, said:

The UK government is committed to human rights in Sri Lanka, including seeking accountability for human rights violations and abuses which took place during the civil war, and which continue to have an impact on communities today.

I made a commitment during the election campaign to ensure those responsible are not be allowed immunity. This decision ensures that those responsible for past human rights violations and abuses are held accountable.

The UK government looks forward to working with the new Sri Lankan government to improve human rights in Sri Lanka, and welcomes their commitments on national unity.

During her January visit to Sri Lanka, Minister for the Indo-Pacific, Catherine West MP, held constructive discussions on human rights with the Prime Minister, Foreign Minister, civil society organisations, as well as political leaders in the north of Sri Lanka.

For communities to move forward together, there must be acknowledgement, and accountability for past wrongdoing, which the sanctions listings introduced today will support. We want all Sri Lanka communities to be able to grow and prosper.

The UK remains committed to working constructively with the Sri Lankan Government on human rights improvements as well as their broader reform agenda including economic growth and stability. As part of our Plan for Change, the UK recognises that promoting stability overseas is good for our national security.

The UK has long led international efforts to promote accountability in Sri Lanka alongside partners in the Core Group on Sri Lanka at the UN Human Rights Council, which includes Canada, Malawi, Montenegro, and North Macedonia.

The UK supported Sri Lanka’s economic reform through the International Monetary Fund (IMF) programme, supporting debt restructuring as a member of Sri Lanka’s Official Creditor Committee and providing technical assistance to Sri Lanka’s Inland Revenue Department.

The UK and Sri Lanka share strong cultural, economic and people to people ties, including through our educational systems. The UK has widened educational access in Sri Lanka through the British Council on English language training and work on transnational education to offer internationally accredited qualifications.”.

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China and US fund ambitious Ambuluwawa Cable Car Project

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By Samanthi Weerasekera

China and the United States are jointly funding the ambitious Ambuluwawa Cable Car Project, which, once completed, will offer an unparalleled experience, with cable cars operating over a kilometer between two mountains without any support structures.

During a visit to the project site on Saturday (23), Chinese Ambassador Qi Zhenhong said that this project is another symbol of the strengthening bond between Sri Lanka and China. “It is a pleasure to have a Chinese investor involved in such a project that further strengthens the bond between Sri Lanka and China,” the Ambassador said, reflecting on the significant international collaboration.

NDF Kandy District MP Anuradha Jayaratne, Chairman of the Ambuluwawa Board of Trustees, stated that the feasibility study for this project was first conducted 18 years ago. He credited the success of the project to the joint investments from China and the United States. “I would like to gratefully recall that it was possible to turn this dream into a reality because of the investors from China and America,” Jayaratne said.

He said that the first phase of the Ambuluwawa Cable Car Project, scheduled for completion later this year, is expected to provide a unique travel experience for visitors. Passengers will embark on a 600-meter cable car journey from the entrance gate of the Ambuluwawa Religious and Biodiversity Complex to the summit of Ambaluwawa Mountain. From there, a thrilling 1.2-kilometer ride will take them unsupported to the Ambuluwawa Tower, offering breathtaking views and a glimpse into Sri Lanka’s natural beauty.

Jayaratne noted that the second phase of the project will extend the cable car line to the Gampola Railway Station. This addition will provide a seamless connection for foreign tourists travelling by the Badulla train and those heading to Nuwara Eliya, allowing them to experience Sri Lanka’s first-ever cable car ride. The second phase will not only enhance tourism but is also expected to transform Gampola into a world-class tourist and commercial hub.

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